The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-06-22
And Receiver Appointed-The Liabilities
Said To Be So, 800, 900, with Individual De-
posits Aggregating About $2,5O0,000.
Vice-President Harper and Cashiers
Baldwin and Hopkins Arrested,
legged Violation of the National Banking
Law-Sad Wreck Caused bySpeculation.


Eugene Powell. A meeting of the board of di-
rectors was called at this morning, but no
means of ascertaining their action exists. The
doors Of the bank were closed, and policemen
within and without guarded the entrance against
everybody except persons having business with
the safe-deposit department of the bank. The
sidewalks were lined with people in the vicinity,
who quietly discussed the situation without even
knowing that governments bank examiner had
been here, or that the doors were closed by gov
eminent authority, No notice had been posted,
and the only information given at the door was
that the doors were absolutely closed
to everybody except persons having property
in the safe deposit vaults. One irate depositor
created a scene by forcing himself half way into
the door where he received blow in the face
from some one inside and was finally taken
away by officers. He said he left his money and
his bank book in there yesterday, and he wanted,
at least, his book. Nothing at all is known yet
of the action of reorganization. suggested, by
leaving out the three officers named in these dis
patches last night. It will be the duty of the
directors to make this change if made at all.
One of the officials of the bank this morning as
sured friend who had entrance TO the safe de-
posit vaults that the bank would pay every dol
lar it owed The general feeling has been that
the bank is strong enough, but a feeling of mis-
trust has become engendered from various
causes against few of the officers
The Commercial Gazette. in an editorial. thus
refers to this feeling: Cincinnati is financially
very sound. If any of our moneyed institutions
have been involved in speculations, it is only
necessary to eliminate the speculative element
and proceed under safe conditions There is
nothing to justify apprehension, and such dis
bot v,1A
remedy"
LATER-It is now stated that the directors
have determined on the appointment of re-
ceiver to take charge of the business, and ef
fort is being made to obtain one Mr. Grifiths
of the Citizens National, has been suggested
but it is thought he will not accept.
The directors meeting closed about 3 o'clock,
but the doors still remained impossible. being
guarded by door-keeper and policeman within
and several policemen on the outside.
At the meeting of the directors Mr. Powell
the bank examiner. announced that owing to the
impairment of the banks resources the govern
ment would take charge of it and appoint a re-
ceiver to wind up the business. 1t is said, un-
officially, that the alternative was given of con-
tinuing in business by a reorganization which
would leave out Vice president Harper, Cashier
Baldwin and Assistant Cashier BENZ. E. Hop
kins, but that the directors were unable to agree
upon such plan, or were unwilling to take tho
risk of run following the interference of the
government. The outcome. however, the
appointment of Mr.. John r. Decamp, vice-pres-
ident of the Metropolitan National Bank, re-
ceiver, and he was placed in charge of the banks
affairs.
It is now stated that the clearing house set
Elements for the past few days show an unusual
drain their resources Besides this, many
banks have kept their checks out of the clear
g-house favor There are numerous ru-
mors afioat concerning the cause of the action
of the bank examiner. Vice-presi6ent Harper,
who has borne heavy strain for the past week,
is much distressed by this mornings action-calls
himself ruined man. and is in a high state of
excitement. A conservative director says it is
his opinion that the depositors will get their
money in full.
It was subsequently ascertained that the liza
bilities of the bank. exclusive OF capital stock,
about So. 900. The individual deposits
are about S., 500, 000
E. L. Harper made an individual assignment
- Eugene Zimmerman. this afternoon, and his
firm, E. L. Harper & Co., dealers in iron, ETC.,
also assigned to Zimmerman. These failures
are the direct result of the closing of the Fidel-
ity bank. Later in the day E. L. Harper made
assignment of his rolling mill, in Newport,
KY, to his superintendent, Adam Wagner. In
mono of the assignments have there been any
preferences The estimated liabilities in all in
terests of E. L. Harper approach s., 600, 600; the
assets, counting his bank stock at par are about
So. 900. 600, as made by himself few days ago.
afternoon brought suit in attachment against the
Fidelity National Bank to recover $67 13l. A, as
sorting that the defendant corporation had fraud
ulently and criminally incurred the obligation
for which the suit had been brought. Attorney
J. T. Foett, when asked what was the basis of
this charge. replied that the Fidelity Bank, be-
fore mourning the liability, notified his client
that $50, 900 had been forwarded to be placed to
its credit, when, in fact no money was forward
ed. It was only week ago yesterday that the
Fidelity Bank sent out the circular denying the
ch al W
charged them with tamperine with spec
ulation in wheat wheat In that circular
than ever, and our deposits have reached this
day the highest point in our history" After
stating that it allowed % per cent. interest on
daily balances calculated monthly, and made no
charge for exchange, they say: 1--WE have the
largest capital, the largest surplus and the arg-
est deposits of any national bank in Ohio"
cred TO prove these statements were not then
true. The depletion of the surplus by with
drawal of deposits has been since that time, and.
so far as known the bank examiner did not base
but upon violation of the national banking
law. This shown by the significant
under afidavits drawn by Assistant United
States District Attorney j. E. Bruce, and sworn
to by Bank Examiner Powell. Deputy Marshal
Rohner went to the Fidelity Bank and arrested
Vice president e. l.. Harper Cashier Ammi
Baldwin and Assistant Cashier Benz. f.. Hop
kps. They were taken before United States
Commissioner Hooper, where they & ave Dali ZOE
future appearance. Mr.. Harpers bond was fixed
at $75 000 and those of the other two at $40 600
each. The affidavit against Harper ch argos that
he did. about juno 10, unlawfully and
illfully misappy funds and credits of the Fidel-
ity National Banking Association, and did issue
certificates of deposit without authority OF the
directory of said association and with intent to
derraud, to-wit certificate for $500. 600
and one for 5000, 000." The affidavit against
Baldwin makes similar charge, fixing the date
as June Ii and the paper as draft for 100000
The Hopkins affidavit charges him with having.
on or about June Is, unlawfully issued certain
drafts or certificates of deposit for large of
money, wit: $500, 900, with intent to defraud
said association" These afidavits follow the
language of Section 5209 United States Statutes.
The penalty prescribed therein is imprisonment
in the penitentiary for not less than FIVE year,s
nor more than ten.
THIS bold action by the government authorities
is regarded as having been taken after the dis
covery of evidence sufficient to Justify il, aud
finds very general commentator, although il